General principlas of agency #2

Question 1

Consumer

Answer 1

someone who uses or purchases a product or service

Question 2

Customer

Answer 2

you don’t own fiduciary duties but you own them honesty and fairness

Question 3

Client

Answer 3

you own fiduciary duties (OLD CAR)

Question 4

Fiduciary

Answer 4

is someone in a position of trust who own loyalty to another

Question 5

Agent

Answer 5

someone who acts on behalf of someone else

Question 6

Universal agent

Answer 6

has broad authority to act on behalf of a principal, such as someone who has the power of authority

Question 7

Principal

Answer 7

is the same thing as a client

Question 8

a special agent (aka limited agent)

Answer 8

has limited authority to act on a client’s behalf, such as a real estate agent or an escrow officer. this type of agent cant bind a client into a contract

Question 9

A general agent

Answer 9

Is responsible for handling all dealings in a given area for a client, such as a property manager. This type of agent may bind a person into a contract

Question 10

Single agency

Answer 10

licensee own undivided loyalty to the client. Licenses represent one party, either the seller or the buyer

Question 11

dual agency

Answer 11

a licensee represents the buyer and the seller in the same transaction

Question 12

Single - license dual agency

Answer 12

is when a single licensee represents both the seller and the buyer in the same transaction

Note: this form of dual agency is NOT practiced in Maryland

Question 13

dual - licensee dual agency

Answer 13

two separate licensees from a single firm each represent one party (buyer or seller) in the same transaction

Question 14

sub-agency

Answer 14

is a licensee who works for one firm, but who is engaged by another firm to perform agency functions on behalf of that firm’s client.

Question 15

Fiduciary responsibility’s

Answer 15

own to clients NOT customers. non-agents don’t have fiduciary duties. The duties include the acronym OLD CAR

obedience
loyalty
Disclosure
Confidentiality
Accountability
Reasonable skill and care

Question 16

Power of attorney (POA)

Answer 16

Is a legal document that grants legal rights and powers from one person (the principal) to another to make decisions on behalf of the principal.

Question 17

Express agency

Answer 17

Is an agency relationship that understands and agreed to by the parties. Spoken or written words create an express agency

Question 18

Implied agency

Answer 18

The action of the parties creates implied agency

Question 19

Ratification

Answer 19

is accepted after the fact, either through signing paperwork or through the party’s actions.

Question 20

Estoppel

Answer 20

prevents one party from suing another

Question 21

Listing contracts (agreement)

Answer 21

should be in writing for clients’ protection. They almost always require a definite end date

Question 22

Exclusive agency

Answer 22

agreements allow only one brokerage to market and sell the property. If the seller finds her own buyer, no commission is paid to the brokerage

Question 23

Exclusive right to sell

Answer 23

agreements provide the listing agent with a commission no matter who brings the buyer to the transaction. It includes definite start and end dates

Question 24

Open listing

Answer 24

The seller works with multiple agents only the agent who successfully brings the buyer gets a commission

Question 25

agency agreements can terminate in five different ways

Answer 25

Expiration, completion, by force of law, thought the destruction of the property or death of the principal, and by mutual agreement

Question 26

Maryland laws does not recognize ______ relationship in real estate transactions

Answer 26

Non agency

Question 27

A non agent

Answer 27

Known as a facility or a transaction broker typically acts as the middleman to consumers in real estate transactions

Question 28

Duties own to costumer (DRHP)

Answer 28

1. Disclosure of material facts 2.reasonable care | 3. honesty and fair dealing 4.prompt presentation of all offers in control

Question 29

Designated agent

Answer 29

Two agents from one firm represent opposite sides of a transaction (broker is dual agent) (Another word for dual agency)

Question 30

Dual agency is only allow in Maryland through the use of ______-_______ agents or

Answer 30

Intra company agents (ICAs)

Question 31

Which fiduciary duty is imposible with dual agency

Answer 31

Undivided loyalty

Question 32

As you know, you must obtain the client’s informed consent for dual agency when entering into an agency agreement with them. At what point do you need to have them reaffirm their consent?

Answer 32

Prior to entering into a contract for a transaction that involves both parties being represented by the same brokerage

Question 33

Informed consent

Answer 33

Means that all parties fully understand the ramification and purpose of dual agency and give the rent and consent to be represented by the intra company agent (ICA

Question 34

Maryland real estate law requires you to obtain your clients and form consent for dual agency that what must you obtain this consent?

Answer 34

At the time you enter into the list / buyer agreement with the client

Question 35

Broker

Answer 35

A person or entity with brokers license. The broker must display their license at all branch locations. It will store all license for all sponsor salesperson and associate brokers that multiple brokers allowed, with separate their broker's licenses They complete 15 hours continuing education every 2 years

Question 36

Every license must carry there ______ at all times when doing business and they must show it on demand

Answer 36

Poket card The Puckett cart must include the licenses theme and business address also includes the sponsor broker's name and address

Question 37

You have ____ years to reinstate your license after it expires

Answer 37

Three years 3

Question 38

Maryland has reciprocal licensing agreements with two states those are ______ and _____

Answer 38

Oklahoma and Pennsylvania

Question 39

Maryland law defines broker as

Answer 39

An individual who provides real estate broker services

Question 40

Agency agreements in Maryland must be in Britain in order to be enforceable _____ has not been recognized in Maryland

Answer 40

Implied agency

Question 41

All real estate licensing must keep copies of documents for at least ____ years

Answer 41

5 years

Question 42

A timeshare estate

Answer 42

Is a piece of real estate owned by multiple, unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one to two week intervals during the year

Question 43

Government like property taxes aas a revenue source because ____

Answer 43

Property values, and therefore taxes, tend to remain stable

Question 44

What factors directly affect and adjustable rate mortgage?

Answer 44

Rate, index, and margin